Terms with Category Legal Contracts
- Filing Extension — Definition,
- An additional amount of time to file your return. A filing extension, however, does not give you more time to pay your taxes.
- Financial Responsibility Laws — Definition,
- A type of law that requires an entity to be capable of paying for damages in the event of a potential claim.
- First Lien — Definition,
- Primary claim by the lender for satisfaction of outstanding debt. A first mortgage creates a first lien.
- First Mortgage — Definition, Important,
- A mortgage that is the primary lien against a property.
- Forbearance — Definition,
- Delaying foreclosure, usually because the borrower has arranged to pay the amount in arrears.
- Foreclosure — Definition,
- The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.
- Forfeiture — Definition,
- Loss of property because of violation of law or contract.
- Franchise — Definition,
- The right to sell products or services under a corporate name or trade mark (established by someone else). This right is usually purchased for cash in addition to a royalty fee on, or a percentage of, all sales.
- Friendly Takeover — Definition,
- When a company purchases another and both parties' management approve.
- Guarantee — Definition,
- An enforceable warranty on the promise of quality of a product or formal promise by one person to take responsibility for the debts or obligations of another person if that person fails to meet them.
- Guarantor — Definition,
- Someone who guarantees something.
- Home Owners Warranty (HOW) — Acronym, Very Important,
- A policy that guarantees workmanship on construction of a home and functionality of some appliances, and which pays for repairs for a specified period.
- Homeowners Insurance Binder — Definition,
- A document accompanying a homeowner's insurance policy that verifies the property is properly insured.
- Hostile Takeover — Definition,
- When a company purchases another but the target company's management does not approve.
- Housing Discrimination — Definition,
- The illegal practice of discriminating against buyers or renters of dwellings on the basis of race, colour, religion, national origin, sex, family status or disability.
- Illiquid Asset — Definition,
- An asset that cannot be sold easily or in a timely manner for its full value.
- Incontestability Clause — Definition,
- A clause that places a time limit on how long an insurer has to void a policy due to a policyholder's accidental misstatement in his or her life insurance application.
- Incorporated Business — Definition,
- A company that exists as a corporation.
- Indefeasible — Definition,
- That which cannot be forfeited or done away with. Indemnity Protection or exemption from loss or damage.
- Index — Definition,
- A table of yields or interest rates being paid on debt (such as Treasury notes or bank deposits) that is used to determine interest-rate changes.
- Initial Public Offering (IPO) — Acronym,
- When shares of a corporation become available to the public for the first time.
- Injunction — Definition,
- A court order that prohibits a party from taking a specific course of action.
- Inspection Report — Definition,
- The documentation of a thorough examination of a house's visible structural parts and systems, conducted before purchase.
- Insurance Attorney — Definition,
- An attorney who works with insurance law.
- Interest Rate Cap — Definition,
- A limit to the interest rate increases and decreases on an adjustable rate loan; either from one adjustment period to the next or over the life of the loan.
- Interest Rate Differential (IRD) — Acronym, Very Important,
- The penalty one pays for breaking a mortgage.
- Irrevocable — Definition,
- Unalterable.
- Joint Liability — Definition,
- The responsibility of two or more people to repay a debt
- Judgement — Definition,
- A determination by a court of law or a judicial decision.
- Land Contract (LC) — Acronym,
- An agreement for sale of property in which the buyer takes possession while making payments, but the seller holds title until full payment is made.
